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    Economics Principles and Policy Study Set 2
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    Exam 29: Monetary Policy: Conventional and Unconventional
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    An Open-Market Purchase of T-Bonds by the Fed Causes the Money
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An Open-Market Purchase of T-Bonds by the Fed Causes the Money

Question 27

Question 27

Multiple Choice

An open-market purchase of T-bonds by the Fed causes the money supply to


A) fall and bond prices to fall.
B) rise and bond prices to fall.
C) rise and bond prices to rise.
D) fall and bond prices to rise.

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